President Muhammadu Buhari on Tuesday presented a budget of N8.612 trillion for the 2018 fiscal year. The budget is 16 per cent higher than that of 2017.
Buhari presented the budget before the joint session of the Senate and House of Representatives.
The 2018 budget is based on crude oil benchmark of US$45 per barrel with estimated daily production of 2.3 million barrels.
The President also said that the budget was based on exchange rate of N305 to one dollar.
The budget expenditure is made up of N2.41 trillion for capital and N3.49 trillion for recurrent.
President Buhari whose speech drew applause of the lawmakers described the budget as that of “consolidation’’ and gave the hope that 2018 would be a better one.
The budget, he said, was prepared and dedicated to the country’s economic recovery and growth.
He appealed to the militants in the oil rich Niger Delta not to revert to violence or engage in destruction of oil and gas facilities and advised that dialogue was the key in ensuring peace and development.
“We must come together to address our grievances. Threat and violence is not the way out,’’ he said.
Buhari also appealed to members of the National Assembly to threat with budget estimate with all seriousness so that the country could revert to its January to December fiscal year.
He revealed he had directed that the military and other agencies should be enrolled in the Integrated Payroll of Personnel Information System (IPPIS) for the purpose of paying their salaries centrally to eliminate ghost workers.
BREAKDOWN OF 2018 BUDGET ESTIMATES
• Benchmark crude oil price-US$45 per barrel
• Oil production estimate – 2.3 million barrels per day
• Exchange rate – N305/US$ for 2018
• Real GDP growth of 3.5 per cent
• Inflation Rate of 12.4 per cent
The proposed aggregate expenditure of N 8.612 trillion (16 per cent above 2017 budget estimate) will comprise:
• Recurrent Costs of N3.494 trillion
• Debt Service of N2.014 trillion
• Statutory Transfers of about N456 billion
• Sinking Fund of N220 billion (to retire maturing bond to local contractors)
• Capital Expenditure of N2.428 trillion (excluding the capital component of statutory transfers).
A substantial part of the recurrent cost proposal for 2018 is for the payment of salaries and overheads in key ministries providing critical public services such as:
• N510.87 billion for Interior
• N435.01 billion for Education
• N422.43 billion for Defence
• N269.34 billion for Health
Key capital spending allocations in the 2018 Budget include:
• Power, Works and Housing: N555.88 billion
• Transportation: N263.10 billion
• Special Intervention Programmes: N150.00 billion
• Defence: N145.00 billion
• Agriculture and Rural Development N118.98 billion
• Water Resources: N95.11 billion
• Industry, Trade and Investment: N82.92 billion
• Interior: N63.26 billion
• Education N61.73 billion
• Universal Basic Education Commission: N109.06 billion
• Health: N71.11 billion
• Federal Capital Territory: N40.30 billion
• Zonal Intervention Projects N100.00 billion
• North East Intervention Fund N45.00 billion
• Niger Delta Ministry: N53.89 billion
• Niger Delta Development Commission: N71.20 billion.
Key projects and programmes to be implemented in 2018:
• N9.8 billion for the Mambilla hydro power project, including N8.5 billion as counterpart funding
• N12 billion counterpart funding for earmarked transmission lines and substations
• N35.41 billion for the National Housing Programme
• N10.00 billion for the 2nd Niger Bridge
• About N300 billion for the construction and rehabilitation of strategic roads
Regional Spending Priorities for Peace, Security and Development
• N65 billion for the Presidential Amnesty Programme has been retained in the 2018 Budget
• Capital provision for the Ministry of Niger Delta increased to N53.89 billion from the N34.20 billion provided in 2017
• Completion of East-West Road, with a provision of about N17.32 billion in 2018.